Rocket Companies (RKT) said Thursday it priced $2 billion of 6.125% senior notes due 2030 and $2 billion of 6.375% senior notes due 2033.
Rocket expects to use the proceeds to redeem several series of notes issued by Nationstar Mortgage, a subsidiary of Mr. Cooper (COOP), which Rocket plans to acquire. Additional proceeds may be used to repay secured debt, amend other Nationstar notes, and cover transaction-related costs.
The notes will be guaranteed by Rocket Mortgage and its subsidiaries. Upon completion of the planned acquisitions, Redfin (RDFN) and Mr. Cooper will also guarantee the notes.
The offering is expected to close June 20.
The notes are subject to a special mandatory redemption if the Mr. Cooper deal isn't completed by Sept. 30, 2026, or if some proceeds aren't used within 45 days of the acquisition, according to the company.
Shares of Rocket were up 3% in recent trading.
Price: 12.86, Change: +0.38, Percent Change: +3.00
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